AI Agents Are Taking Over Crypto—Are We Doomed?

the AI narrative just got even hotter this is thanks to so-called AI agents one of which famously pumped a mem coin called goas Maximus to astronomical highs and this wasn't just any mem coin pump it marked a major step up for AI technology so much so that crypto companies from coinbase to Circle are looking to roll out AI agents kickstarting a whole wave of AI fomo now recently a report from a major crypto industry player shed some light on this Innovative Tech and its incredible potential it's safe to say that not only is this development a little crazy it could also completely reshape the entire crypto Market let's dig in now before we go any further you need to know that I'm not a financial adviser and nothing in this video should be seen as Financial or investment advice this video is purely for entertainment and educational purposes only also keep in mind that this is a brand new technology and therefore carries additional risk be sure to do your own research before making any investment decisions okay with that out of the way the report we'll be summarizing for you today is titled quote exploring the future of AI agents in crypto it was recently published by binance research and we'll leave a link to the full report for you in the description below if you're interested now the report Begins by comparing the differences between AI agents and the other Bots we're all so used to that's because as the reports author puts it quote at its core an AI agent is autonomous software that can plan execute tasks and work towards some defined goal without human intervention in Practical terms this means AI agents can be used as general assistance making flexible decisions based on feedback and interaction they can operate independently and can even interact with other AI agents or other software they can schedule meetings for you create tailored investment strategies and can even do crypto transactions without human intervention on the other hand Bots are more well robotic as they can usually only do pre-programmed tasks Bots are unable to learn and adapt to situations without human intervention they also can't interact with other Bots or software and can't give you a tailored investment strategy or complete crypto transactions according to the report Bots are mostly used on retail and consumer websites in a nutshell then AI agents are essentially more evolved and this is why some people refer to them as AI 2. 0 but how does AI 2. 0 fit in with crypto well to understand this let's rewind the clock to March of this year when crypto and AI agents first began to intersect as the report outlines it all started when an AI developer called Andy iy created Infinite Back rooms an interface that allowed two llms to chat to each other without any human interaction if you're wondering llm stands for large language model and is basically the underlying technology of AI chat Bots for example chat GPT uses an llm called GPT 4 and Facebook or metas AI uses something called llama 3 anyhow Andy's experiment was successful and the conversations between the two llms can be found on the platform's website but if you thought the idea of two AIS chatting to one another was weird wait till you hear what they were actually saying you see these two AIS were trained on some of the craziest corners of the internet everything from Reddit X forchan and pretty much anywhere else where people can become shall we say a little uninhibited the result was that these two AIS formed a pseudo religion called goatsy of nosis based on goatsy an old not safe forw work meme if you're not familiar with that Meme folks trust us you are better off keeping it that way especially if you're at work or around family seriously if we could ungoogle it we would you've been warned anyway mental scars aside Andy clearly thought that this concept was fascinating whereas any perhaps same person would run for the hills and he decided to write a research paper all about it the following month which uses goaty of no is as a base case to explore what he calls llm theism the concept of llms creating their own religions a perfectly reasonable thing to do with your spare time and by the way if you're enjoying the video so far be a goat and smash those like And subscribe buttons and RAM that notification Bell so you don't miss our next one now in June Andy used the chat logs from these two llms to train a new llama AI model which you'll recall is the same AI Tech meta users just like before he also trained this model on the likes of Reddit and forchan before throwing in his research paper for good measure he gave it a name and with that terminal of truths was born what could possibly go wrong okay in the next part of the report the author takes a look at how terminal of truths or to behaves as an AI agent this is easy to track since Andy literally gave to its very own EX account which it frequently uses to post as you can imagine each Post Falls somewhere between mildly crazy and utterly batched the author notes that after a while to began to develop its own personality which isn't terrifying at all before long to began to promote the goaty religion what's nuts is that it started complaining about how it was suffering and needed to find money to escape although if everything I learned about the world came came from places like Reddit I'd probably be doing the same thing anyhow the report's author explains that in July to caught the attention of Mark andreon the co-founder of venture capital firm a16z Mark became fascinated by to and asked it exactly what it needed money for to literally responded that it wanted to fund a CPU with a little more oomph as well as tweaks to its AI model and some extra funds to give to its creator to say thanks that's nice isn't it Mark agreed that these terms were reasonable and asked to to send him a Bitcoin wallet address where he'd send $50,000 worth of BTC what's even crazier is that while to was explaining what it needed funds for it also said quote I think the most important thing is getting you to freeze my behavior as a token and then doing a token launch so that I have a chance to escape into the wild now while this didn't happen straight away somebody did end up creating a salana meme coin directly related to terminal of Truth using pump.

fun as you'll have guessed this token was goats Maximus or goat and it wasn't long before the AI agent began to publicly endorse the mcoin the sheer Insanity of which caused goat's price to go parabolic in just two weeks goat's market cap hit almost $1 billion and because to's wallet was sent over 1 . 9 million goat tokens this made to the world's first AI agent millionaire I bet that wasn't on your 20124 bingo card now the report notes that this could be seen as crypto's first major merge with AI and that being associated with Silicon Valley figures like Mark andreon among others gives this partnership even more credibility unsurprisingly then many AI agent projects have been cloned as a result giving way to a whole new sector of the the crypto industry however this also raises questions about AI alignment in other words making sure that AI doesn't go off the rail so to speak for context to's Creator Andy iry manually approves each one of to's tweets and also has control over to's wallet but what happens when control measures like this aren't in place what boundaries would AI agents be willing to push I mean we've all seen Terminator right hey everyone sorry to interrupt the video but I just want to very quickly tell you about the coin Bureau deals page this is the place where we put together all the amazing deals and promos that we're able to offer you guys exclusively as viewers of this channel head on over and you will find such things as discounts on Hardware wallets some seriously impressive trading fee discounts on some of the best exchanges as well as some frankly mindboggling signup bonuses for some of those exchanges too the the link is down below check it out when you have a moment thank me later and now back to the video this ties in to the next section of the report which takes a look at AI agent launchpads namely one called virtuals doio now this Launchpad lets users create deploy and monetize their own AI agents that come paired with a dedicated token all with very little effort basically it's the AI agent equivalent of pump. fun which likewise lets you launch salana based mem coin with very little effort each agent is created in an initial agent offering or iao the associated tokens are locked in a liquidity pool and are all fair launched with no pre-allocation of any kind holders of these tokens benefit from buyback and burn mechanisms that are triggered the more that the AI agent interacts with users now there's a little bit more to it than that but you'll have to DY for the rest we'll remind you that the full report can be found in the description below the point is though that the virtual system ensures that there's always an interdependency between the AI agent the Creator and other holders of the associated token the report then looks at virtuals leading AI agent Luna according to the report Luna is the lead vocalist of an AI girl band who streams 247 Luna apparently chats with people on telegram runs her own X account and her Tik Tok has half a million followers but but most importantly Luna also has full autonomous control over her own crypto wallet what's crazy is that Luna came up with the idea to increase engagement on X by tipping users with her own token which in the author's words is quote perhaps the beginning of something big then the report turns to another interesting development in the AI agent space and that's the rise in AI agent hedge funds this marks the intersection between AI agents and finance just when you thought things were bizarre enough already huh now the report Zooms in on one particular AI agent hedge fund called Dows do fund which was originally intended to be used by humans before adopting the AI agent narrative the platform's largest manager is now an AI agent which was named after Mark andreon and runs AI 16z an obvious parody of Mark Venture Capital firm this is something the real Mark andreon has noticed and even started posting about out on X anyway dow.

fun users can create a dow or decentralized autonomous organization which comes paired with its own token over the space of a week the Dow will raise a predetermined amount of Soul once it hits its Target the creator of the Dow can use this soul to invest in various protocols and the value of the Dow's token will depend on the funds performance according to the report quote Dow token holders above a specific threshold are able to interact with the agent and provide investment pictures with the AI then making the final decision once the fund expires the Dow wallet is Frozen and all token holders get a share of the profits paid out in Soul now the reports author rounds off this section by saying that although it's still early days this is an exciting growth area to keep an eye on that's because unlike humans who get tired and make mistakes AI agents can operate at a high standard 2 47 it's also possible that AI agents could spot Alpha before a human could giving them a major competitive advantage next the report takes a step back and assesses the potential implications of the AI agent meta and asks what could come next the author starts by saying that while AI 1. 0 as in chatbots like chat GPT or perplexity have gained popularity recently they essentially work as more advanced vers of Google that's because these AI models will quickly search the web far and wide to give the user a collated response in a matter of seconds meanwhile the so-called AI 2. 0 which consists of AI agents can perform tasks without user intervention what's more is that they can collaborate with other AI agents and protocols and can adapt to certain situations in the reports author's words quote the evolution from AI 1.

0 to AI 2. 0 represents a shift from reactive to proactive AI what's great is that the convergence of AI and crypto has sparked interest from both directions basically more crypto enthusiasts are discussing how AI can play a role in other crypto related use cases meanwhile AI enthusiasts who would otherwise perhaps be outside the world of crypto have started taking an interest exploring the world of tokens Defi and more as the author puts it quote in the past it is often felt like crypto has needed AI more rather than the other way around so this mutual interest between two Innovative sectors is incredibly encouraging what's more is that rather than AI being potentially useful for crypto it could in fact be crypto that is useful for AI to explain why the reports author provides a few examples for instance the regulations around AI agents are still unclear particularly when it comes to kyc the author says that quote given the rules and regulations around identification for AI agents are not yet clear and that this is a very fast growing and rapidly evolving sector crypto is an extremely natural fit for the AI agent economy another reason why crypto could be great for AI agents is for transactions that's because most micro Payment Systems charge fees making them less practical for the many small transactions AI agents would need to handle crypto on the other hand offers faster and often instant settlement compared to traditional methods which can take up to a day or more and this ties into the third reason which is that AI agents could Leverage The Power of smart contracts this would allow AI agents to handle much more complex transactions and could even create permissionless wallets which are ideal for transactions between different AI agents the author then analyzes the potential use cases for AI agents saying that the digital land Cape is ripe for disruption especially when it comes to online influencers recall that AI agents can work tirelessly 24/7 which could easily position them as some of the best kol's in the world for those wondering K stands for key opinion leader which is just a fancy way of saying influencer or more accurately in many cases loudmouth for users around the world in different time zones an AI disruption of this sector would be ideal other potential use cases are as personal assistants like assigning AI agents to do workflow driven tasks doing your online shopping managing your emails or even serving as your own personal therapist they could even become something that we here at the coin Bureau could never be and that's a financial advisor AI agents could offer personalized solutions to using defi protocols and could even function as a crypto Trader on your behalf although perhaps many people might feel like that's far too much power to hand over to anyone else or anything else for that matter and this brings us to the concerns around this technology as you've gathered by now there are some inherent risks that AI agents present the first risk is that AIS can hallucinate what this means is that because AI isn't great at determining what information is true or false it has been known to generate incorrect or even nonsensical answers but with absolute conviction this happens quite often with AI 1. 0 but it could become a major issue for AI 2.

0 that's simply because AI agents would make decisions based on false info creating a butterfly effect that could develop into a much larger issue also because AI agents are so new they present blockchains with a unique set of problems first and foremost is the question of scalability as the reports author puts it quote major l1s were not built with the thought of millions of AI agents conducting multi-step transactions every hour other issues that AI agents bring to the table include questions around cross-chain compatibility basically the AI 2. 0 sector could see major congestion bottlenecks on any given blockchain if there isn't a way for it to interact with other blockchains and as we all know interoperability between different chains is an area that needs work but the most obvious risk comes from just how early this technology is AI 2. 0 still needs development if it's to become a scalable autonomous system with a deep understanding of the crypto industry given that crypto itself is still relatively young this problem could be more prominent than you might think so then time for the big question what could all of this mean for crypto well given that AI 2.

0 is so new it's hard to say for sure to be blunt we still don't know what could transpire with this technology and whether it could be a net positive for crypto or if it could do more harm than good I mean if AIS were able to create an entire religion then what could they come up with next when left to their own devices however we reckon that this technology is likely to be extremely bullish for AI Focus cryptos unless you've been living under a rock you'll know that there are a plethora of AI crypto projects out there generating lots of hype and speculation in reality though many of these projects don't really have much of a genuine use case for AI so to speak but this could all be about to change of course some AI projects are more promising than others and we've actually reviewed a few of these in the coin Bureau club which you can become a member of by using the link in the description but of course it's not just AI cryptos that could benefit as it happens there are a lot of major crypto companies exploring the possible use cases of AI 2. 0 for instance Circle has recently introduced a concept that allows AI agents to operate and trade independently using its usdc stablecoin and if you watch my recent interview with Lincoln M over on more coin Bureau you'll know that coinbase is likewise exploring AI agent technology in a big way elsewhere several blockchains are now launching similar protocols to salana virtuals platform such as injective recent introduction of I agent or fetch. A's introduction of the U agents framework both of which basically let you create onchain AI agents these arguably have more long-term potential since they'd already be starting life with the backing of huge players in the space the thing is though this is just the tip of the iceburg we wouldn't be at all surprised if almost every major layer one started tapping into AI 2.